Cisco has is facing a tough outlook, particularly in the face of macroeconomic uncertainty, and its current CEO, John Chambers, may be jumping ship this year. According to The Raynor Report, “[G]iven Chambers’ own recent forecast of a ‘brutal’ coming decade for the IT industry, maybe it’s just the right time to hit the golf links...The retirement talk comes from several sources close to the company, and was confirmed by some Wall Street sources.” In addition to market forces hitting Cisco in recent quarters, the company has suffered from the NSA scandal. Recent revelations from Edward Snowden indicate the rogue agency is interception exports of networking equipment and implanting them with bugs.
The company is also planning a reorganization, placing tens of thousands of jobs at risk. Thus, Chambers may be aiming to call it quits before becoming embroiled in such a massive shakeup. “Cisco’s core markets have slowed and finding a way to squeeze more money out of enterprise networking customers is becoming more challenging with the advent of SDN and open-source solutions,” notes the article. Should Chambers depart, the new CEO would be facing a tough transitional time for the company—to say nothing about the macroeconomic and political (NSA) headwinds.
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